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<strong>METRO</strong> GROUP : ANNUAL REPORT 2011 : STRATEGy<br />

→ Strategic PoSitioning of Metro grouP<br />

wholesale business. We implement these measures in a<br />

targeted manner and based on clear priorities to achieve fast<br />

effectiveness. In the process, we draw on the proven instruments<br />

that we have introduced in the context of our valueenhancing<br />

programme shape 2012.<br />

grow<br />

The aim of the transformation of our sales divisions is to<br />

achieve sustained enhancements in the attractiveness of<br />

our product and service offers to our customers. In this<br />

way, we create growth impulses in all business areas and<br />

thus underscore our competitiveness. We believe that sustained<br />

like-for-like growth is a key precondition of the longterm<br />

success of our sales divisions. We have made this<br />

objective one of our top priorities. To achieve this, we are<br />

prepared to make targeted investments in new product and<br />

service offers as well as selective investments in our sales<br />

divisions’ price level.<br />

improve<br />

We undertake all necessary efforts to secure the economic<br />

viability of our growth plans. This means that we continually<br />

increase our cost efficiency and our cash flow. our underlying<br />

conviction is that continuous improvement processes must<br />

also be a core component of the business model of retail and<br />

wholesale companies. permanent cost optimisations are a<br />

key element here. We will also undertake every possible<br />

effort in terms of Customer value to avoid unnecessary costs.<br />

only that will allow us to invest in the creation of added value<br />

for our customers while also stabilising and increasing our<br />

long-term earnings strength. Cash flow optimisation is<br />

another top priority because this is the key funding source of<br />

our investments. as a retail and wholesale group, we focus<br />

on all areas of cash flow optimisation and intend to markedly<br />

increase our cash flow in the coming years.<br />

Expand<br />

The past years’ strong internationalisation continues to offer<br />

us extraordinary growth opportunities. We see excellent<br />

possibilities for expanding our presence in many countries<br />

where MeTRo GRoUp does business. This applies above all<br />

to the regions of eastern europe and asia. We will continue<br />

our targeted expansion in these regions while markedly<br />

increasing the efficiency of our investments. We plan a substantial<br />

increase in total investments based on our cash flow<br />

to ensure that we can rigorously tap existing opportunities<br />

for expansion.<br />

innovate<br />

In an era of global interconnectedness and ever-shorter<br />

product cycles, our customers’ requirements will evolve<br />

much more dynamically. We regard this as both a challenge<br />

and an opportunity that we rigorously face up to. To this end,<br />

we intend to continue to strengthen our organisation’s innova -<br />

tive strength and tap the broad expertise available across<br />

our international <strong>Group</strong>. In addition, we engage in select<br />

innovation networks to better influence and exploit changes<br />

in our environment.<br />

MeTRo GRoUp’s innovation management is discussed on<br />

pages 122 through 124.<br />

sustainability<br />

→ p. 046<br />

our economic growth targets are compatible with social and<br />

environmental needs. We have firmly integrated the principle<br />

of sustainability into our business strategy. We are active<br />

along the entire supply chain, especially in those areas where<br />

we exercise direct responsibility and can contribute our<br />

expertise. as a result, we can optimally tackle global challenges<br />

regarding food safety, conservation of resources,<br />

demographic change and sustainable consumption. For this<br />

reason, our sustainability management involves the four<br />

areas of activity of “supply chain and products”, “energy and<br />

resource management”, “employees and social affairs” and<br />

“social policies and stakeholder dialogue”.<br />

MeTRo GRoUp’s sustainability management is discussed on<br />

pages 125 through 138.

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